Rule 261: Inquiry needed before disqualifying a practitioner under section 515(5)(b)
Rule 261 is a safeguard. An order disqualifying an authorised income-tax practitioner from representing an assessee under section 515(5)(b) can be passed only after an inquiry held, as far as may be, in accordance with Rules 262 to 267. Rules 261 to 268 set out the inquiry procedure before a practitioner can be disqualified under section 515(5)(b) for misconduct.
Official notified Income-tax Rules, 2026Need advice on Rule 261?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
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Bare law
Rule 261 - Prescribed authority to order an inquiry
An order disqualifying an authorised income-tax practitioner from representing an assessee under section 515(5)(b) shall be passed only after an inquiry, held as far as may be, in accordance with rules 262 to 267.
Rule breakdown
The requirement
No disqualification order under section 515(5)(b) without an inquiry.
The inquiry follows Rules 262 to 267, as far as may be.
Inquiry stages
Charge-sheet (Rule 262).
Inquiry Officer (Rule 263).
Proceedings (Rule 264).
Order (Rule 265).
Procedure without Inquiry Officer (Rule 266) and change of officer (Rule 267).
Key takeaways
Inquiry first
Disqualification only after an inquiry.
Procedure
Rules 262 to 267 apply as far as may be.
Powers
Civil court powers apply under Rule 268.
Practical checklist
- Keep records of your conduct in each income-tax proceeding.
Avoid
- Do not ignore a charge-sheet; the inquiry can proceed without your statement.
FAQs
Can a practitioner be disqualified without an inquiry?
No. Rule 261 says the order shall be passed only after an inquiry.
Which rules govern the inquiry?
Rules 262 to 267, as far as may be.
Who conducts it?
The prescribed authority or an Inquiry Officer it appoints (Rule 263).
Glossary
- Section 515(5)(b)
- The provision under which a practitioner may be disqualified for misconduct.
- Prescribed authority
- Defined in Rule 250(c).